Every firm feels it in February: the stack of returns is growing faster than the team can work it. The usual answer is to hire, but a new employee takes weeks to recruit and months to train, and in June you're paying a full salary for slow months. Here are five ways firms add capacity without adding headcount.
1. Fix intake before the season starts
Many hours are lost chasing documents, not preparing returns. A client portal with an organizer, a clear due date for documents, and automated reminders cuts down on returns stuck waiting for one missing 1099. Building missing items lists from last year's return makes those requests specific.
2. Extend early and on purpose
Decide in January which returns will go on extension, such as clients with late K-1s or complex multi-state filings. Extending on purpose moves work out of March and April instead of scrambling at the deadline.
3. Separate preparation from review
Your most experienced people should be reviewing and advising, not keying W-2s. Moving preparation work down, or out, frees up senior hours for the work only they can do.
4. Clean up the books before the return
Business returns stall when the books aren't reconciled. Getting bookkeeping cleanups done in the fall and early winter means the return is ready to prepare when the K-1s and trial balance are needed.
5. Outsource overflow returns
Overflow tax prep lets you send returns to experienced outside preparers who work in your software and hand the return back for your review. You pay only for the work done, there's no recruiting or training time, and you can scale back after the deadline.
Employee vs. outsourced help
Cost: An employee comes with payroll taxes, benefits and a full salary year round. Outsourced help is billed only for the work.
Speed: Hiring takes weeks. Outsourced preparers can start once access is set up.
Flexibility: Scaling down an employee means layoffs. Outsourced help scales down on its own after April.
Control: In both cases, your firm reviews and signs every return.
Locus Point provides overflow tax prep and bookkeeping for CPA firms, with no minimum hours and daily updates during the season. Learn how it works or book an intro call.